HSBC Asia Pacific ex Japan Sustainable Equity UCITS ETF
| Issuer: HSBC |
| Asset Class: Equity |
| TER: 25bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 21 Aug 2020 |
| Ticker: HSXD |
| ISIN: IE00BKY58G26 |
This fund offers investors targeted exposure to the dynamic equity markets of the Asia-Pacific region, explicitly excluding Japan, through a sustainability-focused lens. It provides a diversified portfolio that includes both developed markets like Australia, Hong Kong, and Singapore, alongside key emerging economies such as China, India, Taiwan, and South Korea. By investing in a broad basket of companies across various sectors, the product aims to capture the long-term growth potential driven by the region's robust economic activity, technological innovation, and expanding consumer base. The strategy is designed for those seeking a single, convenient vehicle to access this vital part of the global economy.
The core of the investment strategy lies in its commitment to sustainable principles. The underlying portfolio is constructed by tracking an index that applies rigorous Environmental, Social, and Governance (ESG) screens. This methodology filters out companies involved in controversial industries like tobacco, thermal coal, and certain weapons manufacturing. Furthermore, it aims to reduce the portfolio's carbon footprint and fossil fuel reserves exposure compared to a standard, non-screened benchmark. This approach not only caters to the values of socially conscious investors but also seeks to mitigate risks associated with poor corporate governance and environmental practices, potentially enhancing long-term, risk-adjusted returns.
By integrating these sustainability criteria, the fund provides a compelling proposition for investors who wish to align their financial goals with positive societal and environmental impact. It allows for participation in the Asia-Pacific growth story while promoting better corporate behavior and contributing to a lower-carbon economy. This makes it a suitable core holding for those looking to build a resilient, forward-looking portfolio that reflects both performance objectives and a commitment to responsible investing.
